Service Marketing Test 1

What is the difference between desired service and adequate service? Explain

Desired services are considered delights to the customer. Adequate services are known as musts for the customer.

Briefly describe gaps 1, 2, 3, and 4, and be able to provide an example of what might cause each one.

Gap 1 - The Listening Gap: Not knowing what customers expect (Ex. Not looking at reviews. Not following up) Gap 2 - The Service Design and Standards Gap: Not having the right service designs and standards Gap 3 - The Service Performance Gap: Not delivering to service standards (Ex. Cleaning crew who does not do a good job cleaning) Gap 4 - The Communication Gap: Not matching performance to promises (Ex. Hotel)

What factors influence customer perceptions of service?

- Product & service features - customer emotions - attributions for service success/failure - perceptions of equity/fairness - other customers.

Why might the zone of tolerance differ for one customer from one service to another?

An individual will have expectations based on past experiences. If they receive good service in one place then they will expect that everywhere they go. The customer will learn to know what to expect from an establishment. Different needs for different services. Different zones of tolerance when in a rush compared to when you have time to wait.

What is the difference between "Services" and "Customer Service"?

By providing good customer service, firms add value to their products and services. Services are what the customer is actually paying for.

Be prepared to discuss the Critical Incident Technique. What are the advantages of using this particular methodology?

Critical incident techniques- Used to figure out information directly from customer. It is an accurate and well-defined evaluation of how the service and employees were. It is normally used in new services or businesses because there isn't any old information to be based off of and this is a form of qualitative research. Actual stories from customers.

Why might the zone of tolerance differ from one customer to another for a service? (Provide an example)

One customer may expect more than another customer. Every consumer has different needs and wants. For example the soap story. Going to restaurant but on a time crunch so their zone of tolerance is much smaller. Hotel, last minute reservation will accept worse room.

What factors influence customers' expectations of service? Provide an example of each factor you identify

Personal needs, personal service philosophy, derived service expectations, service alternatives, situational factors, and predicted service. Word of mouth, implicit/explicit service promises, past experiences. Recommendations, implicit- law firm looking nice so they should be good, explicit- taxi service says they are fast so they must be fast.

How does process quality differ from outcome quality when customers are assessing service quality? Which is more important?

Process quality is service provided. Outcome quality would be after the service. Outcome quality is more important because it is how the customer feels after the experience.

What is the difference between qualitative and quantitative research? Why are both methods needed in a service marketing research program?

Qualitative research is mainly exploratory research. Used to gain an understanding of underlying reasons. It helps to develop ideas for potential quantitative research. Quantitative research is usually referred to as descriptive research (survey) or causal research (cause and effect test marketing). This research is done through statistical and numerical analysis through surveys or pre-existing data in order to improve service. Exploratory is necessary when you do not know the question and is helpful to develop later quantitative research.

What are four sources of pleasure (or displeasure) in service encounters? Be prepared to give examples of each

Recovery- employee response to system failure Adaptability- Employee response to customer needs and requests Coping- employee response to problem customers Spontaneity- unprompted and unsolicited employee actions and attitudes RACS

Be prepared to describe each of the five service quality dimensions. Provide examples of each

Reliability- Ability to perform the promised service dependably and accurately (mechanic) Assurance- Knowledge and courtesy of employees and their ability to inspire trust and confidence. Uber/ financial manager Tangibles- Physical facilities, equipment, and appearance of personnel (law firm) Empathy- Caring, individualized attention the firm provides its customers (waiters ability to cater to customer needs) Responsiveness- Willingness to help customers and provide prompt service (order is wrong at restaurant, their ability to fix it) RATER

What is SERVQUAL? Describe how it might be used by a service firm.

SERVQUAL is reliability, responsiveness, assurance, empathy, and tangibles. It is used to measure service quality within a business. Pg 128 Customers evaluations of the service . Measuring consumer's perception of service quality. Sales are down, golf course example.

How does Customer satisfaction differ from service quality?

Service Quality is the customer's judgement of overall excellence of the service provided in relation to the quality that was expected (outcome, interaction, physical environment). Customer satisfaction depends on the service quality. Customer service is broader while service quality focuses specifically on the dimensions of service.

What are the differences in marketing goods versus services? Be able to elaborate

Services are: - intangible (cannot be inventoried) - heterogeneity (inconsistent) - simultaneous production and consumption (inseparable) - perishability (inventory) Goods are: - tangible (can be inventoried) - standardized (consistent) - production is separate from consumption - non-perishable.

Why would a manufacturing firm be interested in services marketing?

Shipping purposes

What types of marketing research are particularly valuable to service companies? Pick 3 that you think would be most helpful to a services marketing manager in an industry of your choice.

Social media, lost customer research, future expectations research. Social media is widely used today. I think this is a key way to gain customer knowledge as well as network your name. Lost customer research would assist in finding out problems the customers had and may give insight on changes that could be made. Lastly future expectations research would help your service be ready for future changes in the service industry so you can beat competition to the punch.

How is technology changing the nature of service?

Technology is improving the service industry. People have the power to place orders and get technical help right from their homes. This is cost effective for business owners and convenient for customers. Self-service stations decrease lines in grocery stores and they require fewer employees to be working at one time. Human interaction becomes more important because it happens less often.

In one sentence, what is the "Gaps Model of Service Quality"?

The aim of this model is to: Identify the gaps between customer expectation and the actual services provided at different stages of service delivery.

What is the point of looking at the four provider gaps?

The provider gaps are there to help understand why expectations are higher than perceptions and this will help service providers understand their flaws. With changes they can attempt to close these gaps and tighten overall customer gap.

The three additional P's of the service marketing mix are also called the "evidence of service." How is this relevant to the material in Chapter 4?

The three P's are referred to as the evidence of service. This is relevant because customer's perception of service is based on the people, physical evidence, and process. The service delivery by the employees, environment, and the procedures are what decide whether a customer perceives his or her experience as good or bad. They display the evidence of the service promised.

What is a zone of tolerance? (Provide an example)

The zone of tolerance is the area between the desired services and adequate services. These are known as the desirables. The more of these that are provided leads more towards desired and the fewer provided leads more towards adequate.

Why do marketing research?

To understand the customers' needs and wants. It is to solve problems and improve service.

The chapter concludes with a discussion of "upward communication." Why is this topic in a chapter on marketing research?

Upward communication is necessary for keeping a business running smoothly. Waiter would tell manager issue if something goes wrong and is out of his or her ability. Owners and managers may be in constant contact with customers thereby gaining first-hand knowledge of customer's perceptions. Goes back to the process piece of service being so important to deliver the best quality service.

Why might the zone of tolerance differ for one customer for one service for different attributes or dimensions of the service?

When in restaurant one might prefer to be treated better by service rather than get food quickly. (more important it is, the smaller the zone of tolerance)

When might customer expectations differ from customer perceptions?

When the service provider does not deliver what was promised in an advertisement or on their website. The customer expected better service due to earlier promises but instead received unsatisfactory service. The service provider must deliver what is promised in order to keep expectations and perceptions the same. Best case scenario, perceptions surpass expectations.

Should service marketers always strive to delight their customers? Why or why not?

Yes they should always strive to delight their customers. As long as they can provide that quality each time. They should strive to delight their customers but also be consistent with their service. The better service you provide, the more people will be willing to buy your service. In some cases you may be able to raise prices. Increased customer loyalty, positive word of mouth communication, and increased return to shareholders. If they do not, then they might have the same issue that United had with the guitar songs.

Explain each of the three new P's and provide an example of each?

a. Product b. Price c. Place d. Promotion e. People- All human actors who play a part in service delivery and thus influence the buyer's perceptions. f. Physical Evidence- The environment in which the service is delivered and where the firm and customer interact, and any tangible components of the service. g. Process- The actual procedures, mechanisms, and flow of activities by which the service is delivered